Fresh Food Demand in 2019

Fresh Food Demand in 2019.Fresh in Retail: The importance of delivering fresh products to meet the growing demand.

Welcome to 2019, the year of “supply and demand.” Consumers are demanding more fresh items from their retailers, as well as demanding transparency in the nutritional information contained within their food. But most of all, consumers are demanding their fresh food be convenient for them to just grab and go. Long forgotten are the days of long grocery lists that include ingredients for “grandma’s recipe.” Now, consumers are ordering in advance and picking up their food curbside. They are shopping online. Consumers are pre-ordering items at the Meat and Deli departments and purchasing pre-made meatloaf in the grab and go section of their local grocery store.

Keeping up with the consumer’s demand for fresh can be a daunting task. “Fresh Item Management” is not easy, regardless of the size of the retailer. It requires quality data, cooperation from various department heads, constant vigilance, and an end goal for efficiency/profitability. This can seem overwhelming, but when fresh item management is done correctly, the rewards show in your bottom line and customer loyalty.

According to a study produced by FMI, perimeter items are growing in popularity among shoppers. Dollar growth in the perimeter is 2.1 times greater than in other areas of the store. Fresh foods continue to be a point of focus rather than an afterthought. Recent trends have shown that consumers who embrace health and wellness, invest in perimeter purchases and establish new shopping patterns.

At NRF 2019, ADC hosted a panel discussion on the Role of Fresh in Retail. Our panel of fresh experts has a wide range of expertise in managing fresh operations. From technology and managing food waste to regulatory compliance, our panel of experts has seen the good, the bad, and the ugly side of fresh retail.

The panel discussion included a breakdown of the importance of fresh items in retail:

Fresh items have the highest growth in grocery and its growing faster than other food and beverage categories.

Fresh creates differentiation – In a competitive market, not all fresh departments are created equal. The more variety in fresh allows for brand distinction.

Fresh is a “destination” Item – It is what brings people to the store and what brings consumers back.

In the segment below, we explore all the fresh item management needs in order to provide the best customer experience while maintaining and growing profitability in their fresh departments.